Three individuals have been sentenced to a total of 15 years and nine months in prison for their roles in a £70 million Ponzi scheme that defrauded over 3,000 pensioners. Matthew Pickard, 55, Stephen Greenaway, 48, and Paul Laver, 48, admitted to fraudulent trading after operating the scheme through their company, Ethical Forestry Limited.
The trio falsely claimed to be investing savers' pensions in an ethical tree-planting project in Costa Rica, promising substantial returns. Instead, they diverted approximately £14 million of the investors' funds to finance extravagant personal spending, including luxury homes, five-star holidays, a yacht, and a collection of high-end sports cars. These vehicles, including Maseratis, Ferraris, and Porsches, were reportedly hidden from potential investors.
His Honour Judge Alexander Milne KC stated in his sentencing at Southwark Crown Court that the defendants treated investors' money as their own personal funds rather than working capital. "The funds removed were spent as each of you had won the lottery," the judge remarked, noting the stark contrast between the fraudsters' lavish spending and the victims' plight. He added that the scheme was clearly fraudulent as only those running it were benefiting.
The Serious Fraud Office (SFO) led the investigation, uncovering that employees of Ethical Forestry Limited used false company names to gain victims' trust. While trees were indeed planted in Costa Rica, no provisions were made for their maintenance or harvesting, making the promised returns impossible. Graham McNulty, SFO director, condemned the directors for preying on people's good intentions for a "green" investment and stealing hard-earned life savings.
The judge acknowledged that the business, founded by Pickard, may not have started with dishonest intentions, but the operation devolved into a significant fraud. The impact on the victims was described as severe, with their futures blighted, marriages broken, and their health and security jeopardized. Many victims faced returning to work after losing their savings.
Pickard received an immediate jail term of six years, Greenaway was sentenced to five years and three months, and Laver received four and a half years. A proceeds of crime hearing is scheduled to take place at a later date.
